Relocation 1.01 GEM – Global Expert Mobility: A 600 Billion$ phenomena! Tel-Aviv University Adv. Tsvi Kan-Tor January 2017

Contents Part 1 – Introduction (03 - 07) Part 2 - Things to consider in GEM (08 – 15) Part 3 – Types of relocations (16 – 22) Part 4 - GEM in Israel (23 – 26) Part 5 - Global Corporate Relocation Treaty (GCRT) (27 – 28) Part 6 - Global Mobility: Background (29-33) 2

Part 1 Introduction 3

The Global Expert Mobility process The Need – Project, Job Job Definition Candidate Interview Health Insurance Work Permit and Tax Terms – Salary, etc. Ground Facilities Arrival Date Repatriation 4

The GEM Industry structure HR – Companies Lawyers – Practitioners, Court, PIBA Prosecution Regulator – PIBA, compliance, legislator CPA – Tax advisors, social security Ground service companies (House, car etc.) Health Insurance – Health Care Providers Packing and shipping Other services (Pay slip, Corporate Policy, etc.) Academia – research, media Cultural – Language etc. 5

The Mobility Pyramid Annual Turnover GEM 3 – 4 Million people USD 600$ Billion per person – G20 GEM = 1% - 2% of the total mobility GEM = 3 Million experts Total mobility – 300 Million people No reliable data. Educated industry estimation Job seekers Total Legal Employees 35 Million people Undocumented – Illegal employees 50 Million people Refugees – 65 Million people Intra Country – 200 Million people Total Mobility – 350 Million people

The Mobility Phenomena USA: 12 – 20 Million undocumented illegal employees EU + USA + MERCOSUR: 40 Million illegal employees Job seekers (employees, skilled employees, experts) 35 – 40 Million 0.5 Million from Portugal to Angola and Mozambique 3 – 4 Million from Poland to the UK, Ireland and Germany A huge wave from Africa and the Middle East is changing Europe and history!

Part 2 Things to consider in GEM 8

Things to Consider in GEM Work Permits Major factor – Time! Sponsorship Documents Eligibility requirements Very important: Family, Health Insurance, Tax 9

Things to Consider in GEM Ground Services Residence Schools Mentality Shopping Language Formalities – police, municipality, etc. 10

Things to Consider in GEM Medical Insurance Coverage and trips Health care service provider Service availability Air rescue – 3rd country Personal issues with the family - eligibility 11

Things to Consider in GEM Tax Double Taxation Treaties Different CPA’s for employer and employee Who is at what risk Personal issue (options, inheritance, spouse) 12

Things to Consider in GEM Social Benefits Continuity of pension, health insurance, etc. National Social Security Difference in notice, extra hours, holidays, etc. Difference in taxation of shifts, compensations, etc. 13

Things to Consider in GEM Family Many failures due to issues of family members School – cost, language, mentality, orientation Visits to country of origin, flights, resident Repatriation Issues of origin (religious, school, food, etc.) Driving license Spouse work (permit, license) 14

Things to Consider in GEM Culture and Language Nationality and cultural issues Practicing foreign religious - Christian in an extreme Muslim country Family members Language 15

Part 3 Types of relocations 16

One Employee for a Specific Job Types of Relocations One Employee for a Specific Job Managerial or expert position In many cases – long term with family Life in an average to good city Typical positions – CEO, CFO, CTO of local entity Family usually joins 17

Group of Employees for a Project Types of Relocations Group of Employees for a Project Short to medium time No families Reduce ground costs (resident, salary, etc.) Many do not stay for the entire project duration Specific tax and social issues Someone from the company is in charge (HR, operation, project) A local coordinator – Service provider 18

Types of Relocations Commuter (employee travels back and forth and family stays in country of origin) A growing phenomena A solution to issues such as family, school, career of spouse Usually a cheaper option Easy to start Usually up to 4 hours flight 19

Types of Relocations Short Projects (less than 1 year) Usually – no family relocation A smaller “basket” of relocation benefits Some just “come and go” - inspectors, etc. Many skilled employees 20

Types of Relocations Long Projects (more than 1 year) More families join Bigger relocation benefits Local coordinator for ground services Usually senior employees Temporarily work permits or visas 21

(employee remains in destination country for over 5 years) Types of Relocations Localization (employee remains in destination country for over 5 years) Usually end of eligibility to relocation benefits Changes in tax, salary and benefits Permanent resident or citizenship 22

Part 4 GEM in Israel 23

GEM in Israel Niche Several thousand inbound and outbound annually (7 – 9K 2016) Mostly hi-tech, infrastructure, finance, and agriculture Also – media, entertainment, sports, medicine, academy etc. Far East is growing fast – both inbound and outbound Young industry – Short of qualified employees 24

Legislation and Procedures GEM in Israel Legislation and Procedures (present and future) As of 2002 – special sub procedure In the future – several special types of visas Build up of professional service providers PIBA - Population Authority - a success story Better service, more professional, more compliance 25

PIBA - Population Immigration and Border Authority GEM in Israel PIBA - Population Immigration and Border Authority PIBA – control the entire process from POE to Court Implement procedure and regulation POE – Status – Compliance - Court 26

Part 5 GCRT - Global Corporate Relocation Treaty (GCRT) Draft - IBA 27

- GCRT - Global Corporate Relocation Treaty Drafting stage by the International Bar Association (IBA) The concept: Agreed slim base with flexible protocols Including agreed definitions and benchmarks 28

Part 6 Global Expert Mobility: Background 29

GEM - A Part of Global Mobility Illegal immigrants - refugees, undocumented, etc. Legal immigrants Student and academic staff Legal/Illegal workers Diplomats, quasi-government workers, and NGO’s GEM- researchers, scientists, media, sports, entertainment, Hi Tech, engineers, Highly qualified employees (1%-2%) The problems – no agreed definition, no reliable statistics 30

The History of Global Expert Mobility Until 1989 US Domination (up to 1 million GEM) GEM relatively small (250,000 Globally) Majority are non-business (Diplomats, Academia, NGO’s) Family based global mobility 31

GEM in 2015 US stayed the same – less than 1M Steady annual growth of 10% per year for 20 years Global phenomena of over 3 Million and growing More countries, More companies, More sectors, More types, and More individuals 32

The Future of GEM More – companies, countries, employees - $1 Billion per year Standardization – mobility package by seniority or type Several different types – commuters, family, projects Academic employees – HR, law, tax, insurance Global suppliers Global guidelines and treaties New Destinations – Angola, Mozambique, and China 33

Adv. Tsvi Kan-Tor E-mail: tsvi@ktalegal.com Tel: 03-613-8202 z:/kta/presetation/Tel Aviv University – January 2017